Which One of the Following Statements Is Correct Concerning Market

question 15

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)Real asset markets are more efficient than financial markets.
• B)If a market is efficient,arbitrage opportunities should be common.
• C)In an efficient market,some market participants will have an advantage over others.
• D)A firm will generally receive a fair price when it sells shares.
• E)New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

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Definitions:

Interest Rate

The proportion, typically expressed as a percentage, that is charged by lenders to borrowers for the use of their money.

Payoff

The return or potential gain from an investment or decision, which can be seen in financial, strategic, or personal contexts.

Revenues

The total incomes that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Useful Life

The expected period of time during which an asset remains useful to the owner or is capable of generating revenue.